Persistent Systems delivered robust financial performance in Q3 FY26 ended December 31, 2025, showcasing strong revenue growth and successful AI platform monetization during its earnings call held on January 20, 2026.

Financial Performance Highlights

The company achieved significant growth across key metrics, with revenue reaching $422.5 million for the quarter. This performance reflects the company's consistent execution and market positioning.

The company maintained its impressive growth trajectory, marking the 23rd consecutive quarter of revenue growth with trailing twelve-month revenue standing at $1.6 billion.

Margin Dynamics and AI Platform Impact

Despite facing headwinds from wage hikes and new labor code provisions, Persistent Systems demonstrated resilience through strategic AI platform monetization. The quarter saw a one-time impact of 230 basis points on EBIT margin due to increased provisioning for gratuity and leave encashment under India's New Labour Code.

However, the company achieved a remarkable 150 basis points margin improvement through AI platform and tool-driven pricing models. Excluding the one-time labor code impact, EBIT margin would have been 16.7%, representing a 40 basis point improvement quarter-on-quarter.

Strong Order Book and Client Growth

The company's order book performance remained robust with Total Contract Value reaching $674.5 million, including $369.1 million from new bookings. Annual Contract Value stood at $501.9 million, with new bookings contributing $255.8 million.

Client relationships continued strengthening across all revenue buckets:

• Top 5 customers grew by 25.6% year-on-year
• Top 10 customers expanded by 28.3%
• Top 20 customers increased by 26.3%
• Customers with $75 million+ annual revenue grew from 3 to 4
• Customers with $5 million+ revenue increased significantly from 47 to 61

Geographic and Vertical Performance

The company demonstrated broad-based growth across geographies and industry verticals. North America revenue grew 18.6% year-on-year, while Europe expanded by 22.0%. The BFSI vertical led growth with 29.3% expansion, followed by Software Hi-Tech and Emerging Industries at 14.7%.

AI Innovation and Platform Development

Persistent Systems showcased significant progress in AI implementation both internally and for clients. The company's AssistX platform now includes multiple AI agents across various business functions, with measurable productivity improvements. Notable achievements include PiAssist resolving 83% of HR queries autonomously and ITAssist reducing incident resolution time from 3 hours to under 30 minutes.

Dividend Declaration and Capital Allocation

The Board of Directors declared an interim dividend of ₹22 per share on face value of ₹5 per share, representing an increase from the previous year's ₹20 per share. This demonstrates the company's commitment to maintaining consistent dividend payout ratios while supporting growth through strategic investments.

Outlook and Strategic Direction

Management expressed confidence in maintaining growth momentum while progressing toward long-term aspirations of $2 billion revenue by March 2027 and $5 billion by March 2031. The company's focus on AI-driven platform development and customer-centric solutions positions it well for sustained growth in the evolving technology services landscape.

Persistent Systems Limited has formally notified stock exchanges about an upcoming investor/analyst interaction scheduled with Creagis on January 28, 2026. The company filed this regulatory disclosure on January 22, 2026, in compliance with SEBI listing obligations.

Session Details and Format

The investor session is structured as a one-on-one virtual meeting, providing a focused platform for detailed discussions. The timing and format specifications demonstrate the company's commitment to maintaining structured investor communications.

Regulatory Compliance and Content Framework

The company has explicitly stated that the session will reiterate information previously communicated during the earnings call held on January 20, 2026. This approach ensures compliance with disclosure regulations while maintaining transparency with investors. The earnings call covered the quarter and nine months ended December 31, 2025, providing comprehensive financial insights for Q3 FY26.

Information Disclosure Protocol

Persistent Systems has emphasized that no unpublished price-sensitive information will be shared during the interaction. This commitment aligns with SEBI regulations and maintains fair disclosure practices across all investor communications. The company referenced its analyst presentation and factsheet for Q3 FY26 as the primary information source for the discussion.

Documentation and Authorization

The regulatory filing was digitally signed by Amit Atre, Company Secretary, on January 22, 2026, at 21:20:33 IST. This formal documentation ensures proper corporate governance and regulatory compliance for the scheduled investor interaction.